Why should you opt for fractional ownership of property?

By: |
October 05, 2021 5:47 PM

While the earnings from the stock market are dependable on the market sentiments and vary with market fluctuations as seen in the current pandemic situation - that's not the case with fractional ownership.

Fractional Ownership, Commercial real estate, assured rental income, real estate, Fractional Ownership, Fractional Ownership of Real Estate, legal framework, protect investors, REIT, small investors, SPV,Fractional ownership offers stable returns over a longer period of time.

Fractional ownership of property is emerging as a popular investment option in India for some time now. Experts say it is because of the dual advantage it offers through rental income and capital appreciation. It offers an easy way to invest in a commercial property.

Shiv Parekh, Founder of hBits, says, “Properties get selected after in-depth research and analysis. Investors benefit from the high returns and income stability that is offered by fractional ownership of the commercial real estate.”

He further adds, “Fractional ownership is an affordable way to own a commercial property. Fractional ownership platforms provide an opportunity for investors to come together and combine their resources to collectively own a high-value property. This creates lower entry costs for prospective investors.”

While the earnings from the stock market are dependable on the market sentiments and vary with market fluctuations as seen in the current pandemic situation, experts say this is not the case with fractional ownership. Fractional ownership offers stable returns over a longer period of time.

Fast way to invest

Owning a property originally involves a lot of paperwork and is a time-consuming process. Experts say fractional ownership platforms on the other hand make investing easier as all the required documents and information is already available online on the platform ready to be accessed from anywhere.

Low cost, high returns

Industry experts say fractional ownership is a pocket-friendly investment. It offers investors all benefits of owning a commercial property without the requirement of investing huge upfront capital. Along with the regular flow of rental income investors also benefit from the capital appreciation of the property.

Steady income

Fractional ownership platforms list pre-leased Grade A properties on the platform. Parekh adds, “Grade A properties house MNC tenants who come with long lease contracts, lock-in and contractual rent-escalation which ensures a regular flow of income.”

Portfolio diversification

Fractional ownership allows the investors to choose the property they wish to invest in and Parekh says, “can expand their portfolio by investing in multiple properties spread across various markets and sectors.”

Market fluctuations

Experts say fractional ownership has an edge over all other investment options in terms of safety, stability and outcome.

Parekh says, “Commercial real estate is a hard asset and the returns from it do not fluctuate with the market thus ensuring a safe and stable investment”. Moreover, the investment in fractional ownership is not tied up and experts say investors can exit whenever required.

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